2021 Environmental, Social and Governance Report
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Environmental, Social
and Governance Report
2021
About ONE Gas
ONE Gas, Inc. (NYSE: OGS) is a 100% regulated natural gas utility. Headquartered in Tulsa, Oklahoma, the
company is included in the S&P MidCap 400 Index and is one of the largest natural gas utilities in the U.S.
We provide natural gas service to approximately 2.2 million customers in Kansas, Oklahoma and Texas.
We own and operate approximately 63,300 miles of distribution mains, service and transmission pipelines
across our service territory. We consistently rank in the top quartile of all safety metrics tracked by the American
Gas Association, including the lowest Days Away, Restricted or Transferred (DART) rate of all similar-sized local
distribution companies in the U.S. ONE Gas is committed to providing safe, affordable and reliable energy while
helping to build a sustainable future.
Our Divisions Include:
72% market share,
the largest in Kansas
88% market share,
the largest in Oklahoma
13% market share,
the third largest in Texas
Mission Vision
Our mission is to deliver natural gas for a better Our vision is to be a premier natural gas distribution
tomorrow. company, creating exceptional value for our
stakeholders.
Core Values
SAFETY SERVICE
We are committed to operating safely and in an We provide exceptional service and make
environmentally responsible manner. continuous improvements in our pursuit
of excellence.
ETHICS
We are accountable to the highest ethical VALUE
standards and are committed to compliance. We create value for all stakeholders,
Honesty, trust and integrity matter. including our customers, employees,
investors and communities.
INCLUSION & DIVERSITY
We embrace an inclusive and diverse culture that
The information in this Environmental, Social and Governance Report is not to be used
encourages collaboration. Every employee makes for investment purposes. Please see our most recent Annual Report on Form 10-K as
a difference and contributes to our success. updated by the most recent Quarterly Reports on Form 10-Q for information relevant to
investment decisions in ONE Gas securities.
2
2020 Highlights
93.5% 38% $3,220,802
overall satisfaction score of directors are women in total ONE Gas
for Customer and Field or Hispanic Foundation grants and
Service community giving
470 miles Top 25% Top 25%
of distribution mains, for four consecutive Employee engagement
service lines and years in all safety metrics scores were in the top
transmission lines tracked by the American quartile of Gallup’s
replaced in 2020 Gas Association and the Overall Company
lowest DART rate four Database for the fourth
years in a row consecutive year
41% 26.3%
expected reduction in reduction in Scope 1
Scope 1 CO2e emissions CO2e emissions through
by 2025 (from 2014) replacement and
through replacement and protection of distribution
protection of distribution mains and service lines
mains and service lines since 2014
3
Join Us on
Our Path to
a Better Tomorrow
A Message from President and CEO, Sid McAnnally
ONE Gas continues to build on our legacy group also ensures that we are aligned in our
of safely delivering reliable and affordable vision and commitments across the company.
natural gas to our customers. We are
committed to a clear mission – to deliver To protect our planet for a better tomorrow,
natural gas for a better tomorrow. we reduce emissions by tightening and
modernizing our system by replacement of
Part of a better tomorrow means providing vintage pipelines and timely leak detection
an energy source to our customers that and repair. We are also developing and
improves the quality of life in our communities adopting new technologies on our path to a
and helps local economies thrive. Delivering low carbon future and growing our energy
a sustainable energy future requires both conservation programs. Groups across our
a sharp focus on reducing environmental company work every day to explore the role
impact and ensuring the resiliency and our system will play in a sustainable energy
reliability of our delivery systems. ONE Gas future. Their innovation will allow us to make
plays a critical role in meeting the peak energy even more headway to reduce and offset our
needs of our customers and does so at a emissions and emissions of our customers.
competitive price – approximately 3.5-to-1
compared with the alternative of electricity in Maintaining safe operations, supporting
our service areas. growth in our communities and demonstrating
responsible environmental stewardship starts
Reducing and offsetting our methane with our 3,700 dedicated employees. I want
emissions is part of our short-term and to express my gratitude for their teamwork,
long-term business strategies. Our ONE Gas responsiveness and enthusiasm as we look to
Environmental, Social and Governance (ESG) our company’s future.
Steering Committee has diligently worked to
enhance disclosures around ESG initiatives, Our Core Values and commitment to a
expand metrics and targets and provide better tomorrow guide us every day. Over
quality data and reporting transparency. This the past 18 months, we worked together to
4
provide reliable service to our customers
through Winter Storm Uri, addressed the
evolving COVID environment and increased
our focus on inclusion and diversity.
Through it all, our employees have remained
focused on execution and serving our
customers and communities.
Through this report, we share our confidence
that natural gas will serve a critical role as we
continue to transition into a cleaner energy
future. We’re pleased to present a summary
of our work over the past year as we serve
to meet our customers’ needs for affordable,
reliable and clean energy.
Thank you for your support and interest in
ONE Gas.
Sid McAnnally
President and CEO
5
The Benefits of Natural Gas
Natural gas is an affordable, reliable and efficient choice to achieve a
low-cost, lower-emissions future.
Natural gas can reduce emissions and
work together with renewables to create a
more effective energy future.
Natural gas has been a leader in reducing greenhouse gas emissions in
the U.S. While much of this has been attributable to displacement of coal
in electricity generation, natural gas also serves other important energy
functions, such as in our work providing an affordable, reliable and efficient
fuel for heating and cooking. By focusing on what each fuel is better suited
for, natural gas can complement electricity generated from renewables to
help get people the energy they need in an efficient and effective way.
Natural gas is reliable and affordable.
U.S. households using natural gas for heating, cooking and clothes
drying save an average of $879 every year compared to homes
using electricity for the same activities.
6
Natural gas is efficient, enabling us to
meet increasing demand.
Natural gas meets 32% of all energy demand in the U.S. It arrives
more efficiently to homes, with only a 9% energy loss from its source,
compared to electricity, which has more than 60% energy loss.
Natural gas is the preferred
energy choice for homes and
businesses.
More homes and businesses in the U. S. use natural gas than ever
before and the number continues to increase. Nearly 180 million
Americans and 5.5 million businesses use natural gas.
Natural gas is safe.
America’s natural gas utilities invest $91 million every
day in enhancing the safety of our 2.6 million miles of
natural gas pipelines.
7
Helping Our Employees
and Communities
Through Challenges
In a year of unprecedented challenges, our Core Values — Safety, Ethics, Inclu-
sion and Diversity, Service and Value — guided our emergency response and
inspired us to help our customers and communities in new ways.
8
The ONE Gas Foundation made $428,000 in donations to
organizations in Kansas, Oklahoma and Texas to provide
emergency relief assistance to residents impacted by COVID-19.
Response to COVID-19 ONE Gas has also taken steps to support
our customers through this challenging
Our values of Safety and Service guided our time. We connected them to community
response to the pandemic. As our customers’ resources to ease pandemic-related financial
homes became places of work, school and burdens, such as the Salvation Army’s Share
refuge, we continued delivering safe and the Warmth program and the Low-Income
affordable natural gas, bringing comfort and Home Energy Assistance Program (LIHEAP/
stability in the face of uncertainty. LIEAP). In line with regulatory guidance, we
suspended disconnects so customers would
We quickly established a cross-functional continue to have safe and reliable service as
pandemic task force. We launched a multi- they adjusted to the pandemic’s impact on
tiered response and safety plan using their lives.
guidelines from the Centers for Disease
Control and Prevention (CDC), Occupational
Safety and Health Administration (OSHA) and
third-party experts. This plan continues to
serve us as we adjust how we work based on
the risk level of the virus-related activity in our
operating areas.
We leveraged technology to transition more
than half of our 3,700 employees to a remote
working environment in only three days. We
implemented social distancing and hygiene
guidelines for those essential workers who
remained in the field and provided new
personal protective equipment for added
safety. Our customer service representatives
and technicians asked safety-related
questions before entering a customer’s
home or business to limit the spread of
COVID-19 while we continued to provide
essential services.
9
Community outreach has been a natural Our preparation paid off – as the storm
extension of our Core Value of Service. developed, our system models identified
The ONE Gas Foundation donated a total areas that would need additional
of $428,000 to organizations in Kansas, reinforcement under worst-case forecasts.
Oklahoma and Texas that provided emergency We enhanced pressures where needed,
relief to residents impacted by COVID-19. deployed mobile compressed natural gas
Financial relief allowed communities to trailers and designed 18 overland projects to
address housing and food insecurity, help with provide additional short-term supply to lower-
utility bills, and improve medical testing and pressure systems. Our supply chain personnel
healthcare access, including mental healthcare. quickly secured materials and contractors,
The company also provided 3,289 meals to and our construction teams safely executed
frontline workers. each of the 18 projects in just a few days.
In April 2021, we commissioned company For seven long days, our employees worked
leaders to evaluate best practices and outline around the clock through adverse conditions
our options for future work arrangements. and focused on our primary goals: prioritizing
Our hybrid approach to work leverages what safety and providing natural gas service to
we learned as we adapted to remote work keep people warm.
combined with the best parts of working side-
by-side. It also allows us to maintain customer We communicated to our customers about
service while protecting employees and the reducing energy usage to avoid widespread
public. This model will aid in recruiting and outages and provided energy conservation tips
retaining employees and create opportunities through our website, email, social media, local
for continued innovation and engagement. news stations, city officials and state legislators.
As a result of our employees’ collective
Winter Storm Uri efforts, we lost service to fewer than 900
In February 2021, Winter Storm Uri caused of our 2.2 million customers during the cold
unprecedented circumstances across our weather event. The few outages that did occur
service area, including the coldest day lasted less than 24 hours in most cases. This
recorded in over a century, rolling electric performance was the result of many elements
brownouts and countless water main breaks. coming together: the system improvements
since 2014; the dedication of employees who
In recent years, we have focused on improving went the extra mile to maintain gas service; the
the resilience of our system to be better goodwill of customers who conserved their
prepared for events like the winter storm. We usage; and the work of our field operations
completed 19 projects that provided new team who, in the most challenging conditions,
transmission and distribution supply points and worked tirelessly to ensure that our system
81 interconnections, reinforcement or regulation continued to provide natural gas to our
projects to reinforce our system. residential customers and critical care facilities.
10Listening, Learning and
Leading Change In 2020, we leaned on our culture of inclusion
The challenges we faced in 2020 went by hosting listening sessions between our
beyond natural disasters and the pandemic. chief executive officer and employees
Events yielded a new focus on racial representing our seven employee resource
justice issues across our country and in the groups (ERGs), as well as employees who
communities we serve. National headlines, do not identify with or participate in our
events unfolding in our communities and ERGs. The immediate goal of these listening
families experiencing racial injustice remind sessions was to gain a deeper understanding
us of the work yet to be done. There are no of the experiences of our employees from
easy answers. The solution to these issues their unique perspectives.
will involve active leadership, hard work and,
most importantly, recognizing the different We utilized qualitative and quantitative data
experiences everyone faces. To build a better to develop plans that address some of the
tomorrow for everyone, we are committed to common themes we identified from the
listening, learning and leading change. listening sessions. We continue building
our learning culture to enable deeper
ONE Gas does not tolerate racism or conversations about diversity, foster a sense
discrimination in any form. We draw upon of belonging, build fair and equitable systems,
our Core Values to reinforce what we stand and understand the future workforce. Over
for: the value and voice of every person. time, anticipated outcomes include increasing
Our company culture embraces inclusion diverse representation throughout our
and diversity and encourages collaboration organization, improving our job candidate
and feedback. experience and enhancing our mentoring
opportunities. We look forward to sharing
details of our progress in future publications.
We draw upon our
Core Values
to reinforce what
we stand for:
the value and voice
of every person.
11Safety and Resiliency
Safety is our number one Core Value and at the foundation of everything we
do. Our 3,700 employees drive our safety culture and are committed to a goal
of zero harm. Here’s a summary of the progress we’ve made on our culture of
safety, system resiliency and cyber and physical security in 2020 and what to
expect next.
12Employee and Recognized for Safety Excellence
Community Safety ONE Gas was awarded the Safety
Achievement Award for Excellence in
ONE Gas regularly ranks in the top quartile Employee Safety by the AGA for exemplary
for similar-sized local distribution companies employee and vehicular safety for the fourth
for all three personal safety metrics tracked year in a row. AGA recognized ONE Gas for
by the American Gas Association (AGA) – having the lowest DART rate for the fourth
Total Recordable Incident Rate (TRIR), Days consecutive year among the country’s
Away, Restricted or Transferred (DART) and largest natural gas distribution companies.
DART reflects the most severe types of
Preventable Vehicle Incident Rate (PVIR).
injuries. ONE Gas’ safety scores place the
We continue to refine our training, processes company among the safest natural gas
distribution companies nationwide.
and procedures as we strive for zero
fatalities, zero incidents and zero harm to our
employees, customers and communities.
TRIR AGA QUARTILE DATA DART AGA QUARTILE DATA PVIR AGA QUARTILE DATA
2.70
1.53 1.19 1.26 1.04 1.02 0.46 0.25 1.75
0.68 0.43 0.28 1.80 1.75 1.76
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
1ST 2ND 3RD 4TH OGS 1ST 2ND 3RD 4TH OGS 1ST 2ND 3RD 4TH OGS
Total Recordable Incident Rate (TRIR) was Days Away, Restricted or Transferred (DART) Preventable Vehicle Incident Rate (PVIR)
1.02 incidents per 200,000 work hours. was 0.28 incidents per 200,000 work hours. was 1.76 incidents per million miles driven
13Emergency Response Time doing, so emergency calls are assigned to
From the moment we receive a call about a resources who can respond quickly. We
natural gas odor, we closely monitor the time have also expanded the pool of personnel
between creating an emergency order and trained to be first responders. To maintain
the arrival of the first company responder continuous improvement, our managers
to the scene. In keeping with our dedication and supervisors review and evaluate ERT
to continuous improvement, we have set a performance and staffing levels monthly to
goal to meet or beat a 30-minute emergency determine how we can further improve and
response time (ERT) at least 65% of the time. execute those improvements.
In 2020, ONE Gas responded to 64.49% AGA Peer Review Program
of emergency calls in under 30 minutes ONE Gas is an active participant in the AGA’s
across our service territory, which includes a voluntary Peer Review Program, which is
mix of urban, suburban and rural areas. We a program that supports our practice of
addressed the majority of the remaining 35% continuous improvement.
of emergency calls within an hour. While we
slightly missed our 2020 target of 65%, we Participating companies send natural gas
improved 1.66% over 2019 and are taking subject matter experts to visit each other’s
steps to improve our response time further. facilities to conduct a week-long, in-depth
Improvements include utilizing data analytics review of specific areas, including safety
to measure the duration of each stage of culture, technical training, damage prevention
processing an emergency order – creation of and pipeline safety risk management. Peer
the order, dispatch, order acknowledgement, reviewers observe operations and interview
travel to the customer premises and arrival – to employees and contractors from all parts
identify gaps or opportunities for efficiencies. of the organization. At the end of the week,
reviewers identify areas for improvement and
We train our customer service representatives best practices for safety and efficiency.
to work efficiently and effectively with our
dispatch team to transfer and process ONE Gas completed its first review in 2017.
emergency orders promptly. Our dispatch A second review was postponed due to
team now has insight into the location COVID-19 precautions and is rescheduled
of our field personnel, and what they are for April 2022. Collaborating with peers to
From 2017-2020 ONE Gas ranked in the top quartile in all
three American Gas Association industry safety metrics
and had the lowest DART rate four years in a row.
14ONE Gas
has had
zero work-related
fatalities
since its founding
in 2014.
15highlight leading practices and identifying management system aligns with American
opportunities for improvement reinforces Petroleum Institute (API) Recommended
our commitment to safety while also driving Practice (RP)-1173 for pipeline safety, which
a culture of innovation, resiliency and utilizes a Plan-Do-Check-Act cycle to foster
continuous improvement. continuous improvement. In mid-2019, the
AGA board asked member companies to
voluntarily implement API RP-1173 within three
Pipeline Safety years. ONE Gas was an early and enthusiastic
We use a variety of technologies to monitor supporter of this industry-wide commitment.
and maintain our natural gas distribution
system to allow safe delivery of natural gas to In 2021, ONE Gas leadership finalized and
our customers and the communities we serve. approved the OSMS program document
These safety procedures and technologies endorsing their full support and demonstrating
are important parts of our system integrity strong Leadership Commitment – the first
program that help identify areas improvement element of API RP-1173. Full implementation is
as we continue to tighten our system. expected by mid-2022.
Pipeline Safety Compliance Using the four-step cycle, we determine
what we need to do, execute the work,
Our Pipeline Safety Compliance Program
periodically review what we did and then
supports the company’s commitment to
make improvements as required. These four
safety by implementing a framework and
steps provide an ongoing process to identify
processes to achieve regulatory compliance
improvement opportunities.
and explore opportunities for improvement
with a dedicated Pipeline Safety Compliance
Data-Driven Approach to Damage
Group (PSCG) working alongside Operations
Prevention
to drive compliance across the organization.
We leverage data in all areas of our safety
Pipeline Inspection program to guide decision-making and
improve our processes. Analyzing data on
Along with routine inspections, ONE Gas uses
pipeline damage and reportable incidents,
a software solution to risk-rank pipeline assets
understanding what the data is telling us
based on several variables. This software
and taking action to reduce such incidents
helps determine which assets to replace each
enhances safety for all stakeholders and
year and gives us the most significant risk
helps reduce accidental methane emissions.
reduction for each dollar spent.
Over the years, we have built several systems
Safety Management System to improve our processes and drive down
these numbers.
ONE Gas continues to implement a
comprehensive and systematic approach to
managing safety called the ONE Gas Safety Full implementation
Management System (OSMS). This safety of API RP-1173 is expected by
mid-2022.
16Ten Elements of the ONE Gas
Safety Management System (OSMS)
17Damage Reporting System Enhances Risk Assessment and Damage
Safety Capabilities Reduction
Damage to our pipeline facilities can ONE Gas utilizes Risk Assessment and
impact safety, the delivery of natural gas to Damage Reduction technology, also known as
customers and can cause delays in projects. RADAR, to pull data from public and internal
Understanding the root cause of pipeline sources. This data helps us analyze and
damage and having accurate, complete and prioritize the probability of damage occurring
timely data allows the company to mitigate due to excavation activities near our pipelines.
risk and make more efficient decisions. For If a higher-risk situation is identified, we can
example, by analyzing data, the company proactively connect with the excavator onsite
can determine common causes and use before the excavation begins to help foster
that information to improve our damage safe practices. If a damage does occur, using
prevention outreach and reduce pipeline RADAR allows us to respond more quickly to
damage in the future. minimize impacts.
ONE Gas implemented its Damage
Information Management System (DIMS)
Continuous
in 2019, which is a centralized process and Improvement
system of record for documenting damage to
A core element of OSMS program, Continuous
ONE Gas natural gas pipelines and facilities.
Improvement means reviewing all aspects
Before implementing DIMS, ONE Gas used
of our business with a four-step Plan-Do-
five different systems to track damage across
Check-Act cycle to identify improvement
the organization. The transition to a single
opportunities. This goes beyond the work
electronic system of record drives timely
of our own employees: we evaluate our
reporting and improves efficiencies for
contractors, technology, training, and much
employees across the organization.
more to operate in the safest, ethical and
Ticket Management System compliant manner.
ONE Gas implemented a cloud-based Contractor Safety Summits
Ticket Management System in late 2018 to
Contractors play an important role in providing
streamline all excavation ticket requests from
safe, reliable service to our customers and
the respective state One Call centers. Tickets
support construction work, customer service,
are routed through a centralized platform
and compliance activities. Their safety is just
and immediately passed to the line locator,
as important to us as our employees, and we
which gives ONE Gas increased visibility
strive to make them part of our safety culture
into ticket data and line locate performance.
through consistent communications and
These insights allow ONE Gas to manage
safety education.
line locating more effectively and target
improvement efforts as needed.
18ONE Gas
leverages data
in all areas of our
safety program.
ONE Gas
encourages
every employee
to play an active role
in increasing safety and
improving our systems.
19Since 2019, we’ve held Contractor Safety experience utility locating, simulated leaks and
Summits, which bring contractors from handling code violations. The training center
across our service territory – in person or also includes an inspector school and a dig site
virtually – together with representatives from for teaching safe digging techniques and best
ONE Gas. They share safety best practices, practices for trench shoring.
review new protocols and procedures.
The ONE Gas Training Center held its first
Technology to Increase Safety and training class in June 2021. It will help align
Improve System Integrity and standardize training across the entire
ONE Gas has designed and piloted an app organization to reduce risk, improve training
called O-Net that encourages every employee quality and enhance safety for our employees
to play an active role in improving the safety and customers.
of our systems. This new tool creates a space
Aligning Training with B31Q
where everyone can feel comfortable speaking
up and sharing their ideas. O-Net allows In conjunction with the opening of the ONE
employees to identify non-emergency safety Gas Training Center, the company is in the
concerns and operational issues and share process of integrating B31Q, the industry
ideas for improvement. safety and integrity standard published
by the American Society of Mechanical
Employees can submit ideas, photos and Engineers (ASME). The standard establishes
locations through the convenience of their the requirements for developing and
mobile phone and track the progress of their implementing an effective pipeline operator
submission as it is processed. In addition to qualification program. This new standard
safety or operational concerns, O-Net also lets and the centralized training center will bring
employees submit good catches celebrating consistency to technical training across the
employees who made ONE Gas safer and company and help reduce pipeline incidents
reinforcing that safety is our number one value. and injuries caused by human error.
State-of-the-Art Training Center B31Q contains more than 150 pipeline safety
ONE Gas broke ground on a new, state-of- and integrity tasks that are part of operator
the-art training center designed to provide qualification. As the company transitions
hands-on training to Operations employees to this new standard, we will train all field
throughout the company. The 17,000 employees on this new task list through
square-foot space has dedicated areas instructor-led eLearning training courses,
for specific disciplines, including pressure written exams and hands-on performance
and measurement, customer service, evaluations. Simulations will also be conducted
construction and maintenance, fire abatement at our state-of-the-art training center and
and management and excavation safety. A various hubs across the organization as part of
Simulation City includes eight buildings that the qualification process.
replicate real-world scenarios our field workers
typically face. Hands-on training lets employees
20What’s Next begins. If essential controls are not verified
and accessible, employees are trained to stop
New Safety Initiatives Underway work until remedied.
Our Plan-Do-Check-Act cycle drives
Time-Outs for Safety is another 2021 training
continuous improvement. Several new and
initiative for field personnel that reinforces
upcoming initiatives will enhance our safety
the importance of recognizing and reporting
training and further engage our employees in
when a time-out or stop work should be
our safety culture.
utilized, even during an emergency.
ONE Gas plans to conduct a Safety Culture
At ONE Gas, we recognize that there is much to
Survey for all employees to understand
be learned from a near miss. For example, we
better how our employees perceive personal,
currently utilize machine vision integrated with
public and pipeline safety. Subsequent
artificial intelligence technology when there’s
periodic surveys will allow ONE Gas to
a near-miss incident while driving to have
monitor safety culture maturity and take
important safety discussions and coaching
advantage of growth opportunities.
with employees. We have plans to implement
A Start with Safety initiative, beginning in expanded near-miss reporting to track the
November 2021, will train field personnel, causes of near misses across our operations
task-by-task, to confirm that essential safety and identify patterns, which can help prevent
controls are present and working before work potential accidents and influence safety training.
"Simulation City"
ONE Gas Training Center
Tulsa, OK
21Cyber and Physical In addition to the efforts of our dedicated
cyber and physical security teams, keeping
Security our systems safe is the responsibility of all
Our company’s focus on safety also extends employees. We provide quarterly mandatory
to protecting our physical security, information cyber and physical security awareness
technology and operational technology training based on current threats and security
assets. Our chief information officer (CIO), intelligence. We reinforce the importance
who reports directly to the CEO, leads ONE of safety and protecting our assets through
Gas’ cyber and physical security efforts. monthly phishing campaigns, which keep our
The CIO attends the regular meetings of our employees vigilant for cybersecurity threats.
Board of Directors to provide updates on the
ONE Gas has not experienced any reportable
cybersecurity landscape and what ONE Gas
incidents, neither a data breach nor a system
is doing to keep our customers, employees
compromise; however, we understand the
and systems safe.
need to be constantly alert. We continue to
Under the CIO’s direction, the ONE strengthen our cybersecurity defense and
Gas cybersecurity team operates 24/7, response capabilities through state-of-the-
continuously analyzing cybersecurity risks art security solutions and frequent cyber
to our business. The cybersecurity team and physical staff training. We routinely
participates in drills, learns from events participate with various security information
experienced by our peers and any attempts sharing portals to enhance protection across
to breach our system, and keeps abreast of the industry.
industry trends to implement controls, as
ONE Gas also leverages advanced physical
appropriate, to mitigate these risks.
security technologies through AI-assisted
In keeping with this focus, ONE Gas has surveillance and intrusion detection. A
voluntarily participated in Transportaion Security Operations Center (SOC) operates
Security Administration (TSA) corporate and 24/7 providing situational awareness and real-
critical facility security review programs to time response for added security, both for
identify and mitigate potential threats to our staffed facilities and operational assets.
systems and now is working collaboratively
with TSA on the security directives issued to
pipeline operators in 2021, Security Directives
Pipeline-2021-01 and Pipeline-2021-02.
22Our cybersecurity team
operates 24/7, continuously
analyzing cybersecurity risks.
23Environmental Sustainability
ONE Gas is committed to meeting our customers’ needs for affordable, reliable
and lower-emission energy while engaging in responsible environmental
stewardship. To protect our planet for a better tomorrow, we are reducing
emissions released from our system through pipeline replacement and system
integrity projects, public awareness, end-use energy conservation programs and
exploring new technology to take us into a low-carbon future.
24Emissions Reduction We are looking at using our existing assets
and technology to expand renewable natural
To protect our planet for a better tomorrow, gas capture from agriculture, waste-water
we reduce emissions by tightening and treatment plants and landfills. We’re also
modernizing our system through pipeline participating in research studies exploring the
replacement, which helps us maintain safe use of hydrogen production and blending in
and reliable operations while decreasing leaks our systems.
and emissions from our systems.
Technology is a significant driver of true
Public awareness also plays an important role. innovation. ONE Gas continues to invest
We proactively engage key audiences with in developing and adopting innovative
information to help them make informed and technology that improves operational and
safe decisions and avoid third-party damage end-use efficiencies and allows us to continue
to our pipelines. to provide reliable, affordable energy while
reducing our carbon footprint.
Tightening and
modernizing
our system
reduces emissions. $515 million
in capital investments
in 2020: 70% for system
integrity and
replacement projects
26.3%
reduction in Scope 1
CO2e emissions through
replacement and
protection of distribution 470 miles
mains and service lines of distribution mains,
since 2014 service lines and
transmission lines
replaced in 2020
41%
expected reduction in 244 miles
Scope 1 CO2e emissions average amount of
by 2025 (from 2014) vintage pipeline
through replacement and replacement
protection of distribution per year since 2014
mains and service lines
25Pipeline Replacement
(in miles)
Average Annual Est.
2021-2025 120 60 220 400
2020 130 44 7 289 470
2019 4 113 78 2 233 430
2018 21 111 53 5 240 430
2017 23 196 61 1 144 425
2016 22 192 43 2 131 390
Cast Iron Unprotected Bare Steel Protected Bare Steel
Vintage Plastic Risk-Mitigation and Government Relocations
Vintage Pipe as a Portion of Total Pipeline Inventory
(in miles)
All Other Main, Service
& Transmission Pipelines
1,100
Risk-Mitigation & Government 900
Relocations 2021-2025E
5,180 4,280
Identified Inventory 57,020
of Vintage Materials
Vintage Pipeline
Replacement Program
2021-2025E*
Note: Note: Inventory based on data reported for 2020. Pipeline replacement due to future changes
in state or federal regulations is not projected in replacement estimates. Pipeline replacement due to
future changes in state or federal regulations is not projected in replacement estimates.
* The vintage pipeline replacement program includes wrought iron, unprotected bare steel, protected
bare steel and vintage plastic.
26Pipeline Replacement atmosphere. To reduce our emissions, ONE
System modernization remains a pivotal Gas has piloted the use of specialized mobile
way to enhance pipeline safety and reliability compression and vacuum equipment to
and reduce our environmental impact. capture methane that would otherwise vent or
Between 2021 and 2025, we expect to flare during maintenance or inspections and
replace approximately 900 miles of vintage return the gas to the system. In a small pilot
pipeline materials, which includes wrought of approximately 1,200 feet of 18” diameter
iron, unprotected bare steel, protected bare pipe, the equivalent of 26.7 metric tons of
steel and vintage plastic. From 2014 to 2025 CO2e was captured and reintroduced into our
we anticipate a 41% reduction in Scope 1 system – the same environmental impact as
emissions from our replacement and cathodic removing five cars off the road for one year.
protection programs. These efforts help us We are expanding our mobile compression
reduce emissions by replacing higher emitting pilot program in 2021.
materials with lower emitting materials or by
EPA Emissions Reduction Goals
cathodically protecting unprotected pipe,
which lowers the emissions for that pipe. We exceeded our Environmental Protection
Agency’s Methane Challenge Program
Advanced Leak Detection Technology emissions reduction goal for the fourth
In early 2020, ONE Gas invested in advanced year in a row. As a founding member, we’ve
mobile methane leak detection units and committed to annually replacing a minimum
began a pilot to test the equipment across of 2% of our vintage materials – a target we’ve
various pipe types, locations and surveying exceeded each year since we began the
conditions. The mobile units are mounted program in 2016.
within vehicles and provide in-depth analysis
Commitment to ONE Future
to create reports that provide locations of
potential infrastructure leaks. Compared ONE Gas joined Our Nation’s Energy
to traditional walking leak surveys, the Future (ONE Future) in 2020 to deepen our
advantages include higher sensitivity, the ability commitment to operating our pipelines and
to operate in adverse weather conditions and facilities in a way that balances environmental
the potential to survey approximately two times responsibility with sound business decisions.
faster. Locating leaks and addressing them ONE Future represents more than 45
more quickly reduces emissions. ONE Gas natural gas companies working together to
currently operates two mobile detection units reduce methane emissions to 1% (or less)
with plans to add more in 2022. across the natural gas value chain. Members
identify policy and technical solutions that
Capturing Vented or Flared Methane yield continuous improvement in managing
with Mobile Compression methane emissions associated with the
Some of our pipeline safety work requires production, processing, transmission and
us to depressurize pipelines, a process that distribution of natural gas.
has historically released natural gas into the
27In 2020, we submitted our emissions data infrastructure. In addition to electric or
to ONE Future for the first time. ONE Future hydrogen fuel cell vehicles, many of these
will release results in Q4 2021, revealing how programs cover NGVs. ONE Gas also
the emissions reduction work of member offers incentives for personal and business
companies can contribute to long-term purchases of dedicated or bi-fueled NGVs
carbon reduction. in Kansas, Oklahoma and Texas. In the past
two years, we provided more than 250 NGV
Compressed Natural Gas for Fleet and rebates across our service territories.
Transport Customers
Facilitating the use of compressed natural ONE Gas also takes advantage of this cleaner-
gas (CNG) vehicles is just one of the many burning fuel. More than half of our light-duty
ways we can help our customers reduce fleet is CNG-capable. In 2020, ONE Gas
their carbon footprint. Compared to gasoline avoided 47,292 metric tons of CO2e with our
or diesel, CNG can help reduce carbon fleet of NGV, equivalent to removing more
dioxide emissions by up to 30% and carbon than 10,215 passenger vehicles from the road.
monoxide by as much as 85%.
Our public and private CNG fueling stations
The result of compressing natural gas to provide clean-burning compressed natural
high pressures, CNG can be used in place gas to large fleet vehicles across Kansas,
of gasoline, diesel fuel and propane, in light, Oklahoma and Texas.
medium and heavy-duty natural gas vehicles
About ONE Gas CNG Fueling Stations
(NGVs). CNG is one of the cleanest-burning
alternative fuels today, producing the fewest • Operating 27 fueling stations accessible
GHG emissions of any motor fuel. to the public
• Operating 6 private stations
In addition to environmental benefits, NGVs
• Transporting supply to 67 retail fuel
can have an economic benefit, too. CNG
service stations
is typically less expensive than gasoline
and offers higher octane. Many states have • Transporting supply to 49 private CNG
incentives and tax credits available for stations (fuel bus fleets, delivery fleets,
non-internal combustion engine vehicle waste management fleets and more)
purchases, conversions or refueling station
In 2020, we
avoided
47,292 metric
tons of CO2e
with our fleet
28
of NGVs.Public Awareness
Excavation damage – which occurs when
someone unrelated to the utility accidentally
hits one of its lines, usually while digging –
811 Day – “11 Days of Giveaways”
is a safety risk, constitutes a challenge to
maintaining pipeline integrity and can be a We’ve seen significant growth in
significant cause of emissions. engagement with our Aug. 11 - 811 Day -
social media campaign year over year by
Our public awareness efforts and damage adapting to an ever-changing social media
prevention programs proactively engage key environment. We rely heavily on data from
audiences with information to help everyone previous campaigns to guide upcoming
make informed and safe decisions and avoid public awareness campaigns.
third-party damage to our pipelines.
In August 2020, we asked our social media
Public Awareness Programs Include: followers to engage with us and answer
• 811 Call Before You Dig – Participate in questions by commenting to enter drawings
local damage prevention programs to for giveaways. We also worked with local
promote safe digging media to educate key audiences about the
importance of calling 811 before any digging
• Natural Gas Safety – Educate the public
project.
about how to detect a natural gas leak and
what to do and not do if they suspect one • 66,000 engagements, 435% increase
• Cross-Bore Education – Provide cross- over 2019 social media campaign
bore awareness and safety measures to • 4.7 million impressions, 1,924% increase
plumbing and excavating stakeholders over 2019 social media campaign
(cross-boring occurs when a gas line
• 13 earned media placements in four
intersects a water pipe)
metropolitan markets
• Social and Traditional Earned Media –
Leverage popular social media platforms
and news media channels to raise
awareness of safe digging
• Internal Stakeholder Engagement –
Create employee safe digging advocates
through educational materials, contests
and safe digging trivia
Key Audiences Include:
• Customers
• Emergency responders
• Professional excavators
• Homeowners
• Public officials
• Employees 29End-Use Energy In addition to these formal programs, we
invest in energy conversation education for
Conservation our customers and communities. We regularly
We work closely with our customers to engage in multimedia education campaigns
encourage end-use energy conservation that cover television, radio, print, billboards,
through our customer programs and and social media. We provide energy saving
education campaigns. tips on our websites and in communications
to customers, builders and service providers. .
Our rebate programs help customers in Texas
and Oklahoma make smarter energy choices We are actively participating in the research,
that benefit them and the planet. Since 2015, development and deployment of new
we have provided more than 713,000 energy emissions mitigation, delivery and end-use
efficiency rebates, totaling $96 million. technologies that help our company and our
customers positively impact the environment.
Our Programs Include:
Since 2016, ONE Gas has invested more than
• Low-Income Energy Efficiency Assistance
$10 million in researching and developing
Program
innovative natural gas technology solutions
• Home Improvement and Appliance through an ongoing partnership with the Gas
Replacement Program Technology Institute (GTI), a leading non-profit
• New Home Program organization specializing in researching new
energy technologies. In 2020, the company
• Commercial Direct Install Program
contributed $755,280 for technology
• Natural Gas Vehicle Rebate Program development through our partnership with
• Water Conservation Program GTI. Our investment supports more than 100
active technology projects.
2020 Energy Efficiency Program Highlights
22 million 63,665 rebates
gallons of totaling
water saved
by customers
$11,295,932
issued
30In 2020,
the ONE Gas
Energy Efficiency
Program
helped customers save
22 million gallons
of water.
31Innovation and while supporting the American farmer. The
joint effort will deliver a sustainable, renewable
Technology energy option for ONE Gas commercial and
Renewable Natural Gas industrial customers to reduce emissions and
achieve ESG goals.
Renewable natural gas (RNG) projects
capture methane from organic materials like ONE Gas is also exploring opportunities with
food and animal waste, redirecting it away RNG project developers to capture methane
from the environment and removing harmful from organic waste sites like landfills and
contaminants from the atmosphere. ONE Gas wastewater treatment facilities across our
is exploring how it can deliver this captured service territory and how to deliver it through
methane to homes and businesses just like our existing pipeline assets.
the geologic natural gas we deliver today.
Exploring Hydrogen Technology
In spring 2021, we announced a partnership
Another exciting opportunity to positively
with Vanguard Renewables to develop and
impact the environment is with renewable
expand farm-based RNG projects across
hydrogen and hydrogen technologies. ONE
Kansas, Oklahoma and Texas, marking
Gas is actively investing in research and
Vanguard Renewables’ first mid-continent
partnerships to understand the mechanics
alliance with a local natural gas distribution
of blending renewable hydrogen into our
company. The partnership taps into
existing pipeline system. Blending hydrogen
Vanguard’s network of farm-based anaerobic
into the existing natural gas infrastructure
digesters, which offer a circular solution to
has national and regional benefits for energy
food-waste recycling and decarbonization
storage, resiliency and emission reductions.
Renewable Natural Gas Process
Capture biowaste Convert into Process the Inject the
from dairies, biogas (anaerobic biogas to make biomethane into
farms, landfills digestion, etc.) it pipeline-ready the pipeline for
and wastewater (biomethane) future use
treatment plants
32In 2020, ONE Gas partnered with eight fuel for multiple end-use applications, including
national laboratories and 19 other industry fuel cell electric vehicles, when coupled with
participants on the HYBLEND™ Collaborative large, baseload consumers that use hydrogen
Research Partnership. Led by the National for clean, reliable stationary power.
Renewable Energy Laboratory (NREL), this
two-year project examines the technical As a project partner, ONE Gas has provided a
barriers and long-term effects of hydrogen at financial contribution for the multi-year projects
different blends on different pipeline materials, and supplies natural gas as an energy source
quantifies the costs, environmental impacts and for the steam methane reformation process to
other opportunities for hydrogen production. convert natural gas to hydrogen.
In close collaboration with GTI and The In addition to national research studies, ONE
University of Texas at Austin, ONE Gas also Gas is working on efforts to advance the
joined the U.S. Department of Energy (DOE) development of hydrogen use on a local level.
project, Demonstration and Framework for ONE Gas has joined the recently formed
H2@Scale in Texas and Beyond. The project Oklahoma Hydrogen Production, Transportation
is supported by DOE’s Hydrogen and Fuel Cell and Infrastructure Task Force and will provide
Technologies Office within the Office of Energy research on the production and distribution
Efficiency and Renewable Energy. H2@Scale of hydrogen, including using existing pipeline
in Texas and Beyond intends to show that infrastructure to safely transport hydrogen and
renewable hydrogen can be a cost-effective hydrogen fuel products.
In 2021,
we partnered with
Vanguard
Renewables to
develop farm-based
RNG projects.
33Making a Difference
Social responsibility begins with fostering a safe, ethical, inclusive and diverse
culture. ONE Gas employees care about one another as much as they do our
customers and the communities we serve. Here’s how we made a difference for
our employees, customers and communities in 2020, and what’s next for 2021.
34engagement scores were in the top quartile
Supporting Our of Gallup’s Overall Company Database
Employees and showed improvement for the fourth
consecutive year. Gallup studies consistently
We’ve seen firsthand how an inclusive work
show organizations with highly engaged
culture,
Employee where all viewpoints
Resource are welcome,
Groups at ONE Gas employees have fewer safety incidents, less
creates an engaged and high-performing
turnover and more productivity.
workforce and an environment where top
talent wants to work.
Inclusion and Diversity
Since we began measuring employee To build a better tomorrow for everyone,
engagement in 2016, we’ve seen a marked we have created a culture that embraces
improvement in scores each year. In 2020, inclusion and diversity and encourages
we again had high participation in our annual collaboration across our organization. The
employee engagement survey, with 90% of family-like environment and mutual respect
employees providing feedback. Employee make ONE Gas a special place to work.
ONE Gas Employee Resource Groups
BLOG
BLOG (Black Leadership at ONE Gas) VERG (Veterans Employee
Shares and promotes resources to advance Resource Group)
inclusion and diversity through the lens of Supports and develops current and future
our African-American and Black employees. veteran employees.
CAPABLE
ONE PRIDE (People Respecting Inclusion
Promotes understanding and provides
and Diversity in Everyone)
support for employees with disabilities and
Promotes a safe and supportive culture
those helping loved ones with disabilities.
for LGBTQ+ employees that allows each
employee to bring their whole self to work
and is actively engaged with the community.
La Voz
Raises awareness of Hispanic and Latino
culture while fostering and promoting
WE Lead (Women in Energy Leading)
professional development opportunities and
Supports women through professional
serving our communities.
and personal development, networking
with peers and leadership, mentoring and
community engagement and philanthropy.
Native ONE
Promotes awareness of Native American
culture, issues, health and education to
employees and the community.
35We do not tolerate racism or discrimination Our Employee Resource Groups (ERGs) drive
in any form. We draw upon our Core Values engagement and awareness throughout our
to reinforce what we stand for: the value organization. In addition to connection and
and voice of every person. Our company collaboration, ERG’s help us recruit diverse
culture embraces inclusion and diversity and talent, share valuable education on diverse
encourages collaboration and feedback. topics, provide professional and leadership
development opportunities for members
The Board approved updates to our Code
and promote community involvement. All
of Business Conduct and Ethics in 2020 to
employees are welcomed and encouraged
reinforce our policies on non-discrimination,
to join ERGs, regardless if they identify as a
anti-harassment and equal opportunity, which
member of the group’s constituency.
included requiring our suppliers to adopt
policies and practices on these topics as well. Growth and Diversity
And we recognize the continuing importance Every employee makes a difference and
of listening to our employees to create a more contributes to our success at ONE Gas. We
inclusive environment , which we continued in actively recruit and retain a high-performing
2021 through CEO LIstenting Sessions. workforce and create an environment where
Our Inclusion and Diversity Council, chaired top talent wants to work. Our programs and
by our CEO, includes five permanent and 14 policies help attract diverse talent and support
rotating members from various functional our employees’ physical, social, emotional and
areas, backgrounds and experiences. financial health.
The Council provides governance and
In addition to monitoring the diversity of our
guidance for implementing I&D strategies,
workforce across roles and leadership levels,
and its members are natural advocates and
we also require leaders to employ diverse
thoughtful listeners making an impact with
teams when interviewing talent. Our annual
their local teams.
employee engagement survey focuses on
company values, including Inclusion and
Diversity, using Gallup’s Inclusiveness Index.
We Lead Its popular mentoring program, open to
Mentoring Program all employees, pairs company leaders
WE Lead (Women in Energy Leading) is our with mentees that enhance participants’
largest and longest-running ERG with more personal and professional skills. The group
than 500 active members. matched 86 employees with mentors in
2020 and has facilitated more than 430
professional matches since the program
began in 2015.
362020 Workforce Diversity Stats • 55% Women and individuals who
• 27% Women in the workforce identify as members of traditionally
underrepresented racial and ethnic
• 35% Individuals who identify
groups in Engineering positions
as members of traditionally
underrepresented racial and ethnic • 48% Women and individuals who
groups in the workforce identify as members of traditionally
underrepresented racial and ethnic
groups in IT positions
Benchmarking Workforce Demographics
2020 2018 U.S. Utility Company
Category
ONE Gas Average 1
Women 27% 25%
Individuals who identify as members
of traditionally underrepresented 35% 27%
racial and ethnic groups
Women and individuals who
identify as members of traditionally
underrepresented racial and ethnic 43% 35%
groups in leadership
1. Source: 2018 EEOC Reports: NAICS2 22-Utilities
(most current data available due to COVID-related delays)
37Wellness at ONE Gas Financial: Help employees prepare for the
future by educating them on spending, saving
Just as our employees take exceptional care and investing to meet short- and long-term
of our customers, we strive to take exceptional financial goals.
care of them. ONE Gas is committed to
fostering a culture of physical, financial, Emotional: Educate and promote ways to
emotional and social well-being that supports overcome life challenges that can affect
all aspects of employee’s lives. Our well-being an employee's health, family life and job
programs and benefits take a holistic approach performance.
to inspire employees to make healthy personal
and professional lifestyle choices. Social: Highlight the value of being part of a
community and the importance of developing
Four Areas of ONE Gas Well-Being healthy relationships.
Physical: Encourage healthy lifestyles where
Click here to learn more about employee
employees are aware of their state of health
well-being and benefits at ONE Gas.
and opportunities for improvement.
Physical Financial Work-Life Career
Well-Being Well-Being Balance & Culture
Paid Time Off
Health Insurance Employee Resource Groups
Retirement Savings Plans: Holiday Time Off
and Prescription
401(k), Profit-Sharing Plan Mentorship Program
Drug Paid Pandemic
Leave
Employee Stock Purchase
Dental Paid Parental Leave Professional Development
Program
SmartDollar — Money Continuing Education
Vision Management Tool and Mothers Rooms Scholarship and Tuition
Financial Education Assistance Programs
Health Spending
and Savings Adoption
Volunteer Program and
Accounts Life Insurance Assistance
Grants
Program
(FSA, HSA)
Tobacco Cessation Accidental Death & Employee
Service Award Recognition
Program Dismemberment Assistance Program
CareATC Wellness
Short- and Long-Term Tele-Mental
Centers Matching Grants
Disability Counseling
(where available)
Dependent Care Flexible Elder Care
Virtual Visits Job Shadowing
Spending Account Resources
38Employees Helping Employees: professional development. It also reduces the
ONE to ONE Fund time and cost of recruiting and competing for
ONE to ONE Fund is a voluntary, charitable talent and skills externally.
organization created by employees to help
Through employee listening sessions, we
each other in times of personal crisis. An
learned that some employees felt that
eight-member board of directors, comprised
our internal candidate experience lacked
of ONE Gas employees elected for four-year
transparency. In response, we reviewed
terms, administers the fund. The mission of
our internal candidate experience from the
the ONE to ONE Fund is to assist in times of
application process through interviewing and
crisis, such as natural disasters, unexpected
job placement. We identified opportunities
illnesses and associated health care
to diversify the makeup of our interview
expenses, or other hardship situations for
panels and provide more communication
ONE Gas employees.
touchpoints throughout the application and
• In 2020, 33 employees received interview process.
$66,507 in financial support.
In spring 2021, armed with this information,
• 32 employees used 1,812 donated ONE Gas piloted an updated internal
vacation hours. candidate experience. We increased the
diversity of interview panels and took steps
What’s Next so that applicants received constructive
Enhancing Our Internal Candidate feedback at each phase of the recruiting
Experience process. Survey feedback from the pilot
showed the process was positive, transparent,
Annually, ONE Gas fills approximately 40%
fair and supportive to the internal candidates.
of open positions with internal candidates.
The new internal candidate experience was
Hiring from our internal workforce increases
implemented company-wide in summer 2021.
employee engagement and enhances
Top 25% 26%
Employee engagement Year-over-year increase in
scores were in the top membership in
quartile of Gallup’s Employee Resource Groups
Overall Company
Database and showed
improvement for the
fourth consecutive year
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